Briefing on items on the agenda
Latest Update : July 14, 2021
Back to Shareholders' Meetings (Year 2021)
The 75th Ordinary General Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 75th fiscal year, together with consolidated and non-consolidated financial statements.
More information is provided on page 16 through 68 of the Notice of the 75th Ordinary General Meeting of Shareholders.
Brief Explanation of the Current Business Environment
During the consolidated fiscal year, the future of the Japanese economy remained uncertain. Although exports and consumption declined substantially due to the spread of COVID-19, the worst appears to be behind us as exports to the U.S. and China have rebounded. The U.S. economy slowed down due to COVID-19, but economic activity has since been recovering, including increased production in a wide range of industries. The European economy remains stagnant. Although the manufacturing industry is slowly recovering, lockdowns have been extended in conjunction with additional waves of COVID-19. In the Chinese economy, domestic demand recovered. For instance, automobile sales in China were back to a level prior to the spread of COVID19, and exports also remained robust, particularly to the U.S. In Southeast Asia, the future remains uncertain due to the impact of restrictions on economic activities to curb infections of COVID-19.
Working against this backdrop, the MinebeaMitsumi Group concentrated on cutting costs, creating highvalue-added products, developing new technologies, and enhancing its marketing approach to boost profitability further
Current Fiscal Year Results on Consolidated Basis
As a result, net sales were up 9,979 million yen year on year to 988,424 million yen, the highest since our founding. Operating income was down 7,481 million yen year on year to 51,166 million yen, profit before income taxes was down 8,562 million yen to 49,527 million yen, and profit for the year attributable to owners of the parent was down 7,216 million yen to 38,759 million yen.
ABLIC Inc. was made a subsidiary on April 30, 2020. The company has been included in the scope of consolidation in conjunction with the business integration. This includes the company's profits and losses from the date of the business integration on.
Business Results by Segment
The four main businesses of the MinebeaMitsumi Group as of March 31, 2021, are the Machined Components Business, the Electronic Devices and Components Business, the MITSUMI Business, and the U-Shin Business. The business results of each segment are as follows.
Machined Components Business
The main products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for aircraft. Sales of ball bearings were up owing to solid demand from fan motors. Rod-end bearing sales decreased due to decreased aircraft-related demand. Pivot assembly sales were down due to shrinking of the HDD market.
As a result, net sales were down 23,474 million yen year on year to 157,411 million yen, and operating income was down 8,656 million yen to 31,218 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers, and special devices.
Sales of motors increased due to a recovery in demand in the latter half of the fiscal year, but net sales of LED backlights for LCDs were down due to decreased demand associated with a decrease in the number of smartphone models using them.
As a result, net sales were down 15,575 million yen year on year to 363,847 million yen, and operating income was up 82 million yen to 17,634 million yen.
MITSUMI Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Semiconductor devices performed well as did mechanical components such as game consoles, resulting in an increase in net sales. On the other hand, as a one-time expense, the acquisition cost distribution related to the acquisition of ABLIC Inc., the cost of sales of inventories recorded by the so-called PPA, etc. of 2,086 million yen, and the optical device related expenses for major Chinese customers 1,899 million yen was incurred.
As a result, net sales were up 68,761 million yen year on year to 361,004 million yen, and operating income was up 1,105 million yen to 19,761 million yen.
U-Shin Business
The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial components and housing equipment components (such as building and house locks). Sales of automotive components were down substantially due to deceleration of the automotive market. In addition, 4,257 million yen was incurred as one-time expenses, including expenses related to restructuring costs in Europe.
As a result, net sales were down 20,012 million yen year on year to 105,133 million yen, and the operating profit or loss was down 4,448 million yen to the loss of 1,850 million yen.
Capital Expenditures
During the fiscal year under review, capital expenditures were 4,652 million yen for the Machined components business, 20,377 million yen for the Electronic devices and components business, 10,625 million yen for the MITSUMI business, 2,569 million yen for the U-Shin business, for the Other businesses and the whole company (common) of 7,299 million yen totaling 45,522 million yen. The main capital expenditures for the machined components business were equipment to increase production of medical devices, etc. in North America. The main capital expenditures for the electronic devices and components business were equipment for motor-related facilities, etc. in Thailand. The main capital expenditures for the MITSUMI business were equipment for optical devices related facilities, etc. in the Philippines. The main capital expenditures for the U-Shin business were equipment for automotive related facilities in Europe and China
Consolidated Statements of Financial Position and Consolidated Statements of Income
Balance Sheets and Statements of Income and Balance Sheet and Income Statement
The Consolidated Statements of Financial Position and Consolidated Statements of Income are as shown on pages 39 to 41 of the Notice of the 75th Ordinary General Meeting of Shareholders, and our Non-Consolidated Balance Sheet and Non-Consolidated Statement of Income are as shown on pages 57 to 59, so we will not provide an explanation of these matters.
